The Illinois Department of Financial and Professional Regulation (IDFPR), working with the Federal Deposit Insurance Corporation (FDIC), stepped in to take control of Pulaski Savings Bank in Chicago on Friday, January 17, 2025. This decision was made due to the bank’s risky financial condition and reduced capital, as stated by the IDFPR.
Key Details of the Bank Closure
Pulaski Savings Bank, which began its operations in 1890, was found to be in an unsafe financial state, prompting regulatory authorities to take immediate action. According to an official IDFPR statement, the intervention was necessary to ensure that customers would not face any disruption in their banking services or lose access to their deposits. The bank held approximately $49 million in assets at the time of its closure.
Millennium Bank to the Rescue
Millennium Bank, a state-chartered and minority-owned institution in Illinois, has agreed to acquire Pulaski Savings Bank. This seamless transition allows Pulaski’s customers to continue accessing their accounts without any interruptions. Starting Saturday, January 18, 2025, the former Pulaski Savings Bank will operate as a branch of Millennium Bank, maintaining regular business hours.
“Today’s action ensures customers receive the service they deserve,” said Mario Treto, Jr., IDFPR Secretary. The IDFPR emphasized that taking control of a bank is always a last resort but necessary to safeguard customers and the state’s financial integrity.
Protecting Customer Funds
The FDIC, which insures deposits up to $250,000, played a crucial role in ensuring that customers’ money remains secure. Acting Director of the Division of Banking, Susana Soriano, reassured customers, saying, “Not one customer with deposits at Pulaski Bank will lose a penny as a result of the steps taken today.”
The IDFPR’s swift action reflects its commitment to maintaining the stability of Illinois’ financial institutions and protecting depositors from potential losses.
The Importance of Strong Regulation
The closure of Pulaski Savings Bank highlights the critical role of financial oversight in Illinois. Both the IDFPR and FDIC work together to uphold the safety of the banking system while protecting customer interests. These regulatory measures ensure the long-term health of financial institutions and the trust of the public.
Disclaimer – Our team has carefully fact-checked this article to make sure it’s accurate and free from any misinformation. We’re dedicated to keeping our content honest and reliable for our readers.
